The opening of Wall Street does not offer respite to European markets, still anchored in the red in the middle of the afternoon. In Paris, the Bedroom 40 still lost 1.7%, to 6,249.26 points, in a trading volume of 1.8 billion euros. In New York, the major indices are unable to recover from their fall the day before, the strongest since June 2020. At the start of the session, the Dow Jones lost another 0.8% (-3.57% on Wednesday) and the Nasdaq Composite 0.3% (-4.73%).
The statistics of the day do not constitute any support. The “Philly Fed” index, which measures the evolution of activity in the Philadelphia area, plunged to 2.5 points in May, well below the 16.7 points expected by the consensus and, above all, from 17.6 points the previous month. The weekly jobless claims have exceeded expectations, pointing to 218,000, compared to the 200,000 targeted by economists. Sales of existing homes fell by 2.4% in April while their average price soared by nearly 15% in one year. The Conference Board’s index of leading indicators fell 0.3% in April, against an expected stability.
Quick action against inflation
No help either from the European Central Bank. The latest monetary policy report presented by the ECB revealed, at the start of the afternoon, that the leaders of the institution are pleading for rapid action against inflation, the ” gradual normalization of the monetary policy stance (…) [doit donc] to be prosecuted. more and more calls are being made for a first rate hike in July.
Against the backdrop of this session, investors’ concerns about the impact of rising costs (fuel, freight, labor) on corporate margins, after the double alarm of leading distributors walmart and Target over the past two days, which has earned them respective plunges of 11% and 25% on the day of the publication of their quarterly accounts, accompanied, for both, by lowering their annual targets.
Who’s next ?
” It is clear that transport costs are significant and have an impact on [certaines] of the biggest companiescan only note Kim Forrest, of Bokeh Capital, interviewed by CNBC. Now investors are scratching their heads, thinking, so who’s next? Above all, these comments give us clues as to what is going on in the minds of consumers.. »
” Consumers are challengedrebounds Megan Horneman, of Verdence Capital Advisors. Since late last year, they’ve been using their credit cards to meet rising food and energy prices, and it’s gotten even worse… It’s going to hurt big retailers and Walmart is l ‘one of them. »
Derichebourg soon to nearly 20% at Elior
On the business side, Societe Generale (+2.7%) finalized the sale of its Russian subsidiary Rosbank and will spend a charge of 3.2 billion euros in the second quarter. This seems to have reassured the operators. The bank posted the largest increase in the Cac 40.
The biggest decline, on the contrary, comes from commercial real estate Unibail-Rodamco-Westfield (-9.8%), due to consumer fears (Klepierre also lost 9%) but it is the luxury sector that weighs most heavily in the balance. Considered as expensive values on the stock market, Kering, Hermes, L’Oreal and LVMH drop from 2.3% to 3.3%.
Excluding the flagship index, Derichebourg will acquire 14.7% of the capital ofElior, at a price of 5.65 euros per share, well above current levels, to bring its stake to 19.6%. Many questions on the stock market about the relevance of this operation: Elior lost nearly 7% and Derichebourg fell 15%. Orpea gives up another 10%, the day after new revelations from Mediapart after other information from Radio France this morning.
At the head of the SRD, Valneva rises by almost 10%. The European Medicines Agency (EMA) has accepted the submission of the marketing authorization dossier for its inactivated whole-virus vaccine against Covid-19, VLA2001.